Anchorvale Crescent EC site gets only three bids from cautious developers

On back of a current oversupply.

An EC site at Anchorvale Crescent got only three bids at the close of the tender yesterday, reflecting the weak sentiments about the current state of the property market.

According to the Housing and Development Board (HDB), the 17,450-square meter site can yield an estimated 525 flats.

The top bid was submitted by Sim Lian Land at $157.8m. Analysts also attributed the lukewarm response to the looming EC oversupply in the North East.

“The number of bids reflect the current sentiment of the EC market particularly in the North East Region. It is not surprising given that there are now a record 2,000 vacant EC units that have been launched and remain unsold islandwide as at December 2014. There is, in the near future, at least 6,000 units in the pipeline, of which 1,700 are located in the North East. Developers also took into consideration that potential demand has to contend with the Mortgage Servicing Ratio and the resale levy,” said Desmond Sim, Head, CBRE Research, South East Asia.